Over the past year, investors bought nearly a quarter of all homes in the U.S. market, according to a new study. While many of those investors will put in the time and effort to make changes and flip those houses, many others will make some changes and then rent the home out to help diversify their portfolios. There are pros and cons to owning an investment property, though, and many investors find one of the most serious drawbacks comes from trying to manage it themselves. Handling rent collection, maintenance requests, and marketing means sometimes wasted time many property investors simply can’t afford. Property management experts, though, are prepared to handle those issues, but understanding how to find a property manager isn’t common knowledge. Sure, you could do a quick Google search, but you want the best property manager, for your specific needs, right? What can you do to connect with the right professionals? It begins with a better understanding of the types of property managers available.
Property Management Companies and Individual Property Managers
Property management companies are widely available in nearly every property market in the United States, but increasingly, so are individual property managers. It may help to learn more about the benefits and drawbacks of working with both types of managers.
Knowing how to find a property manager that is right for your specific property is more important than finding just any property manager. Property management companies were designed to meet the needs of multiple properties or multifamily properties. In most cases, these organizations have multiple employees specifically trained in the various aspects of property management to deal with any problems the property may encounter. Some offer online portals to stream rent payments, maintenance requests, and to help you keep track of what’s happening with your property on a daily basis. They do work with multiple investors at once, but they also have many team members to better meet your needs
Individual property managers work best if you have a single property or just a few properties to manage at a time. Individual property managers typically take contracts from multiple property investors, too, so they often have a number of responsibilities at once. Moreover, if you wish to grow your investment portfolio in the future, they may not be able to grow with you.
Selecting the Right Individual or Team Means Research
Whether you choose to go with an individual property manager or a team to meet your needs, research is the key to connecting with the right company to meet your needs. If you have a strong network of other investors, you may want to ask for referrals. In fact, investors and real estate agents with whom you work can both typically offer you a few referrals to help you begin your research. As you begin to compile a list of names, ask about the strengths and weaknesses of the managers so you get a closer look at who might be the right person or group to meet your needs.
From there, consider looking into all of your prospective candidates on the National Association of Residential Property Managers website, as well as Florida’s Real Estate Commission website. This will help you learn more about how prospective property managers are licensed and whether there are any current complaints against them.
Once you have a short list of organizations and individuals to consider, work to understand what properties they currently manage. Visit those properties. Take a look around to better understand whether they’re well maintained. If you see obvious signs that the property is in need of repair, it could be a fairly serious red flag.
At this point, you may want to take the time to call a few of these companies and speak to a leadership team member. Ask to review their contract to learn more about their services. When you receive their documentation, work to learn how they advertise vacancies and the average length of time it takes them to fill those vacancies. Marketing is key to ensuring your investment achieves the ROI you’d hoped for, so ensuring their marketing program aligns with your goals is a must.
Take the time to understand who your main contact will be when you have concerns. If you’re worried, you need to be able to reach out to an individual (even within a company) and have open lines of communication.
Reviewing the fee structure is important too. You must understand what their charges will be from month to month, and how their fees work. Some groups and individuals work on a flat fee basis while others expect a percentage of the rent. Don’t forget to compare those rates among property management companies. Fees that are far too high or too low may be a concern.
Additionally, research how long your contract will be with the company, and how you can terminate their services. Some companies require at least a 60-day notice. Others may require you to sign a long-term contract.
Finally, review their standard lease agreements with tenants. Do they stay with the values you hold as a property owner? Do the late rent policies make sense? Are the tenant’s responsibilities carefully outlined to help protect you from future litigation?
Making the Right Choice
How to find a property manager? Connecting with the right property manager takes quite a bit of research, but the benefits are absolutely enormous. Not all property managers offer the same services. At Roy and Co., we are real estate investors too, and we treat our clients’ investments with the same care that we treat our own. Your real estate investment should be worry-free, and selecting the right property manager can help make that happen. Contact us today to have an open conversation.
